Move Up: Right Time?

Irvine1stTimer

New member
I am looking for some help, would appreciate your kind thoughts.

We bought a 3 bed Cal Pacific homes's condo back in 2015, which has modestly appreciated since then, we have close to 30% equity in this.

Our family situation has changed, where we need a bigger place to accommodate family needs. Ideally close to 2500-3000 SQFT, at current market new home will be close to 1.3-1.4M. I am confused what to do, as both approaches have pros and cons

A) We can afford to buy a new place under 1.1M without selling the current condo, and convert our condo into rental ( negative CF of 250-350 a month). Unfortunately nothing much is available close to 1.1M. The ones which are they are not too big and/or not very desirable

B) Sell our Condo, and move this equity and more cash towards new home

C) We can probably wait for another 4-5 months. Maybe continue waiting, and see what happens later this year?

We aren't FCBs, to make it clear. Single, hardworking earner, with family of 4.


 
If you can, rent and buy something in the $1.1m range. Check West Irvine, they have some inventory and maybe you can push to $1.2m there because of the low or no HOA's and low MR's.
 
Are you dead set on irvine?
You can get something like this in your price range in Tustin, on the irvine border.
https://www.redfin.com/CA/Tustin/1426-Charleston-St-92782/home/12255438

3,000 sq ft, 3 car garage, 4 BR, 4.5 baths + loft for $1.1M

New STEAM school and new middle school/high school in two years.

If you are not open to outside of Irvine I would sell. Negative cash flow and probably not much more appreciation in next 5-7 years seems like a no brainer to sell.
 
Burn That Belly said:
Have you considered Tustin Ranch? Bigger homes for less money.  Must you stay in Irvine?

Btw, congrats on your ROI equity. You?re the classic example I was talking about when I mentioned before that people want to use that ROI to move up to bigger homes.

He said he had 30% equity. If he put 20% down, not great ROI and defitnely not a great CAGR.
 
qwerty said:
Burn That Belly said:
Have you considered Tustin Ranch? Bigger homes for less money.  Must you stay in Irvine?

Btw, congrats on your ROI equity. You?re the classic example I was talking about when I mentioned before that people want to use that ROI to move up to bigger homes.

He said he had 30% equity. If he put 20% down, not great ROI and defitnely not a great CAGR.

We need to be in Irvine due to special circumstances. We put 10% down, I am happy with ROI :). Again this is our primary residence so not too worried about this factor. As long as I don't lose money, I am fine.
 
qwerty said:
Are you dead set on irvine?
You can get something like this in your price range in Tustin, on the irvine border.
https://www.redfin.com/CA/Tustin/1426-Charleston-St-92782/home/12255438

3,000 sq ft, 3 car garage, 4 BR, 4.5 baths + loft for $1.1M

New STEAM school and new middle school/high school in two years.

If you are not open to outside of Irvine I would sell. Negative cash flow and probably not much more appreciation in next 5-7 years seems like a no brainer to sell.

Did BTB steal your account?

Those Columbus Square 3CWGs are trash.

Just kidding... we almost bought there... maybe we should have... then me and qwerbelly could trade hamburger recipes.

For the OP:

1. Do you have time to manage a rental?
2. Do you have to buy a new home?

Whatever you do, please get a house with a proper driveway. :)

 
best_potsticker_in_town said:
If you can, rent and buy something in the $1.1m range. Check West Irvine, they have some inventory and maybe you can push to $1.2m there because of the low or no HOA's and low MR's.

This is actually a good advice. West Irvine has No HOA low Mello and some will expire in a few years. The neighborhood is around 20 years old and well kept.
 
Newer communities have enough information through sales offices. Buyers should ask for all the details.

Advertisement pop up at every turn. Potential buyers should have enough info to filters through.

The older neighborhood people may not know.
 
eyephone said:
Irvine1sttimer: I would go with C

The reason why I choose C. Because I predict when people do their tax estimates or when they file their taxes. They will be sticker shocked! Possible fire sales on home prices!

There are many people who I talked to that don?t know about the tax law change.

Why pay more when you get it for less. Remember there are many people that live paycheck to paycheck that are not going to save to pay their taxes. They have two choices borrow to pay, or sell their homes.

No one likes my scenario. But it?s playing out right now.
 
eyephone said:
eyephone said:
Irvine1sttimer: I would go with C

The reason why I choose C. Because I predict when people do their tax estimates or when they file their taxes. They will be sticker shocked! Possible fire sales on home prices!

There are many people who I talked to that don?t know about the tax law change.

Why pay more when you get it for less. Remember there are many people that live paycheck to paycheck that are not going to save to pay their taxes. They have two choices borrow to pay, or sell their homes.

Then wouldn't it make you profit MAX ROI if you sell now?
 
Mety said:
eyephone said:
eyephone said:
Irvine1sttimer: I would go with C

The reason why I choose C. Because I predict when people do their tax estimates or when they file their taxes. They will be sticker shocked! Possible fire sales on home prices!

There are many people who I talked to that don?t know about the tax law change.

Why pay more when you get it for less. Remember there are many people that live paycheck to paycheck that are not going to save to pay their taxes. They have two choices borrow to pay, or sell their homes.

Then wouldn't it make you profit MAX ROI if you sell now?

I?m seeing price decreases and this is suppose to be the hot busy season.
 
eyephone said:
eyephone said:
Irvine1sttimer: I would go with C

The reason why I choose C. Because I predict when people do their tax estimates or when they file their taxes. They will be sticker shocked! Possible fire sales on home prices!

There are many people who I talked to that don?t know about the tax law change.

Why pay more when you get it for less. Remember there are many people that live paycheck to paycheck that are not going to save to pay their taxes. They have two choices borrow to pay, or sell their homes.

No one likes my scenario. But it?s playing out right now.

I believe the stagnation is to come next. Where excess build up. The flipper for sure will hurt as they must sell. Homeowners, will get stings with lower tax deduction but not eneough to give up ownership. If they MUST move for job change or other significant life events then it could be tough but still can do.
 
Compressed-Village said:
eyephone said:
eyephone said:
Irvine1sttimer: I would go with C

The reason why I choose C. Because I predict when people do their tax estimates or when they file their taxes. They will be sticker shocked! Possible fire sales on home prices!

There are many people who I talked to that don?t know about the tax law change.

Why pay more when you get it for less. Remember there are many people that live paycheck to paycheck that are not going to save to pay their taxes. They have two choices borrow to pay, or sell their homes.

No one likes my scenario. But it?s playing out right now.

I believe the stagnation is to come next. Where excess build up. The flipper for sure will hurt as they must sell. Homeowners, will get stings with lower tax deduction but not eneough to give up ownership. If they MUST move for job change or other significant life events then it could be tough but still can do.

Cv: With all due respect. Did you read in the other tax thread that one TI member is going to lose around $54k in deductions (that?s a lot of money) due to SALT cap and another member is working part time to reduce her income (I can?t work part time)
 
eyephone said:
Compressed-Village said:
eyephone said:
eyephone said:
Irvine1sttimer: I would go with C

The reason why I choose C. Because I predict when people do their tax estimates or when they file their taxes. They will be sticker shocked! Possible fire sales on home prices!

There are many people who I talked to that don?t know about the tax law change.

Why pay more when you get it for less. Remember there are many people that live paycheck to paycheck that are not going to save to pay their taxes. They have two choices borrow to pay, or sell their homes.

No one likes my scenario. But it?s playing out right now.

I believe the stagnation is to come next. Where excess build up. The flipper for sure will hurt as they must sell. Homeowners, will get stings with lower tax deduction but not eneough to give up ownership. If they MUST move for job change or other significant life events then it could be tough but still can do.

Cv: With all due respect. Did you read in the other tax thread that one TI member is going to lose around $54k in deductions (that?s a lot of money) due to SALT cap and another member is working part time to reduce her income (I can?t work part time)

We'll see how it works out.  I see that some blue states are crafting work-arounds so that people can still fully deduct their state income tax + property tax.  Who knows if it'll come to fruition and if the IRS will allow it, but it does seem that states are attempting to create work-arounds for this.
 
@Eye

I believe you. That mean that person must have good source of income. It goes back to be prepare  for life unexpected as a homeowners. There are much more cost associated to own than just pay your Mortgage and tax.
 
Jantoven said:
eyephone said:
Compressed-Village said:
eyephone said:
eyephone said:
Irvine1sttimer: I would go with C

The reason why I choose C. Because I predict when people do their tax estimates or when they file their taxes. They will be sticker shocked! Possible fire sales on home prices!

There are many people who I talked to that don?t know about the tax law change.

Why pay more when you get it for less. Remember there are many people that live paycheck to paycheck that are not going to save to pay their taxes. They have two choices borrow to pay, or sell their homes.

No one likes my scenario. But it?s playing out right now.

I believe the stagnation is to come next. Where excess build up. The flipper for sure will hurt as they must sell. Homeowners, will get stings with lower tax deduction but not eneough to give up ownership. If they MUST move for job change or other significant life events then it could be tough but still can do.

Cv: With all due respect. Did you read in the other tax thread that one TI member is going to lose around $54k in deductions (that?s a lot of money) due to SALT cap and another member is working part time to reduce her income (I can?t work part time)

We'll see how it works out.  I see that some blue states are crafting work-arounds so that people can still fully deduct their state income tax + property tax.  Who knows if it'll come to fruition and if the IRS will allow it, but it does seem that states are attempting to create work-arounds for this.

The work around will not work. (Read article) https://www.google.com/amp/s/amp.northjersey.com/amp/637093002
 
Mety said:
eyephone said:
eyephone said:
Irvine1sttimer: I would go with C

The reason why I choose C. Because I predict when people do their tax estimates or when they file their taxes. They will be sticker shocked! Possible fire sales on home prices!

There are many people who I talked to that don?t know about the tax law change.

Why pay more when you get it for less. Remember there are many people that live paycheck to paycheck that are not going to save to pay their taxes. They have two choices borrow to pay, or sell their homes.

Then wouldn't it make you profit MAX ROI if you sell now?

Very good questions. Maybe Sell your condo. Rent for a little while, and wait for market to tank next year as predicted by EyePhone
 
Back
Top